Are Finkurve Financial Services Ltd latest results good or bad?

Finkurve Financial Services Ltd has reported its latest financial results for the quarter ended September 2025, showcasing a notable growth trajectory in net sales, which reached ₹48.05 crores, reflecting a quarter-on-quarter increase of 20.49%. This growth is significant compared to the previous quarter, where net sales showed a marginal decline. The company's operating profit margin for this period was recorded at 34.15%, indicating a consistent performance in maintaining operational efficiency, although it represents a slight decrease from the previous quarter's margin. In terms of profitability, the standalone net profit for the quarter was ₹5.92 crores, marking a growth of 16.31% compared to the prior quarter. However, this growth rate is lower than the 30.18% growth observed in the previous quarter, suggesting some volatility in profit generation. Despite the positive sales and profit growth, Finkurve's return on equity remains a critical concern at 8.00%, which is below the average for financial services companies. This metric raises questions about the company's capital efficiency and its ability to generate adequate returns for shareholders. Additionally, the company's valuation appears to be a point of contention, with a price-to-earnings ratio significantly higher than the industry average, indicating a potential disconnect between market pricing and fundamental performance. Overall, Finkurve Financial Services Ltd's recent results reflect strong revenue growth and consistent operating margins, but challenges in profitability and valuation metrics suggest a complex financial landscape. The company has experienced an adjustment in its evaluation, highlighting the need for ongoing scrutiny of its operational and financial strategies moving forward.